The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1887-03-17
ABONANZAIN COTTON SEED.
The Plans Of the New Southern Oil
Company.
THE NEWS AND COURIER BUREAU, I
1Ol MAIN ST. COIJJMBIA. March II /


Butcher will leave Columbia on Mon
day for Houston, Texas, to locate
the site for ore of the first Of the oil
mills TO be established by the South
ern Cotton Oil Company. Journey
ing in this direction they will select
sites for the other mills which it is
proposed to put up this year. Dir.
John oliver, in conversation with q
representative Of the Ne1rs and Cou-
rier tonight, said:
The mills 10 be built by the South
ern Company will each have a ca
pacity of $50 tons of cotton seed
daily, or $4,000 tons . year, the pro,
duct Of $4,000 bales. The size of
these projected mills may be judged
by the fact that the present Colum-
bia mill, now controlled by the Oil
Trust monopoly, has daily capacity
of seventy-fye tons, and yet is able
to consume as much seed as any mill
east of the Mississippi. The eight
mills TO be built this year will cost
$125,00O dollars each, making the
outlay of the company million dol
lars in 1887.
las has already been stated the
special machinery required for ad-
ditional mills cannot be turned out
this year. Mr. Oliver gave some in
teresting information as to the meth
cd of organizing the Lew company.
The capital stock was fixed at 3d.
100000. Each of the half dozen indi-
viduals and firms organizing the com.
pany subscribed for certain guam
tity Of stock, upon the agreement
that a proportion of one-half to two
thirds thereof was to be appropriately
placed by them.
The amount Of money actually
contributed by the organizers will be
about $2,OOO,O00. That sum repre-
sents the present m; mum amount
of cash capital. The organizers will
offer one-half or two.thirds Of the S5,-
100000 of stock subscribed for to
tie planters and business men Of the
South. so as to enable them to con-
troll the organization, if they wish to
do so. No stock will be issued until
it is paid for. If the South does not
take this portion Of the stock it will
be sold to Northern parties who are
now Supplying for it, and who will
enter the company in good faith.
ut is to be a legitimate business
enterprise, relying for its success
upon its superior economy in the
manufactures and the good will of
the Southern planters. Mr.. Oliver
says that either mill should have
100000 working capital, which
would bring the investment in each
up to S225,000. Residents of each
city where mill is located will have
the option Of taking a part of the
stock in it, even a majority. This
will give local interest and confidence.
Mr.. Armour having affirmed and de-
nied in order to affect, the stock mar.
ket and make the money, which he
is believed to have made, has settled
down now and wants to come into
the company, but he is not wanted
any more He showed his colors too
soon. Anticipating as result of
the competition higher prices for cot
ton seed and lower prices for oil.
Mr.. Oliver is nevertheless sure that
from 20 to 25 per cent. annual profit
will be made by the Southern COM
pany. He has it figured down close
ly. Tie public have but little idea
what enormous profits the Oil Trust
is making in the business. 1t is too
big bonanza for experienced mer
like the divers to be crowded out Of.
Tie Neacs und Courier representative
showed Mr.. Oliver letter from the
Hon. G. B. Lartigue, of Blackville,
urging the advantages Of that town
as a site for one of the mills. lie
stated that he was receiving great
numbers of such letters, but that the
location Of the mills must be decided
first by the transportation advantages
offered, and second by the facilities
given for competition on superior
terms with the Oil Trust railroad
centres, where the Oil Trust mills
we're antiquated and inefficient
would be selected first. Charleston
was good point. He knew of nc
better site for mill than Columbia
but the fact that the Oil Trust mil
here was one Of the newest and best
equipped in the country, would make
this city one of the last places to be
attacked by the Southern Company
y. G. G..
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